Guide to overpaying a mortgage

Overpaying your mortgage can help take years off your repayment time.

For an estimate of how much money you could save, try our mortgage overpayment calculator.

Your home may be repossessed if you do not keep up repayments on your mortgage.

The benefits of overpaying a mortgage

  • You can start to reduce your mortgage balance, meaning you could potentially pay off your mortgage sooner.
  • You can save towards a future mortgage payment holiday.  
  • When savings rates are low, the amount you save on your mortgage interest could be more than you would otherwise earn in savings interest.  

When to make early mortgage repayments

There are certain circumstances when overpaying a mortgage is a good idea:

  • If you get a regular bonus or inherit some money so you can make a lump-sum payment.
  • If you're planning on starting a family and would like to reduce or stop paying your mortgage while on maternity or paternity leave.  
  • If you like the idea of being mortgage-free earlier.  

Ways you can overpay

Overpaying a mortgage is easy to do and just means paying a bit extra on top of your usual monthly payment, or paying occasional lump sums.

Any overpayments you make will be credited to your mortgage account the same day, which will reduce the amount you owe straight away. And because interest on your mortgage is charged daily, your overpayment will reduce the amount of interest charged straight away.

Try our overpayment calculator and see how much you could save.

Overpayment calculator

Types of overpayment

Adhoc and lump sum payments

The most flexible way to make an overpayment is to set up a payment from your current account.

Some months you might want to pay more than other months, and at times, you might not want to make an overpayment at all.

You can overpay an amount of your choosing, subject to your mortgage terms and conditions. For many of our mortgages this is capped at 10% of your mortgage balance per year.

  • Pay from your bank or building society account.

Sort code: 60 92 04
Account number: the first eight digits of your mortgage account number
Reference or roll number: all 10 digits of your mortgage account number
Payee: the name your mortgage account is under.

Other ways to make an adhoc payment:

  • Over the phone by debit card
  • In branch by cash or cheque

Increasing your regular monthly payment

If you'd like to make a regular additional payment, and your standard mortgage payment is collected by Direct Debit, you will need to call our Customer Contact Centre to authorise the collection of your chosen amount on top of the standard monthly payment.

Direct debit

0345 1 200 100*

9am - 5pm Mon-Fri 9am - 1pm Sat

This overpayment will continue every month until you tell us to stop or change it.

Overpayments to mortgages with more than one part

Where a regular additional payment is registered, it’s possible to make the overpayment to a particular part of your loan by giving us specific instructions when setting up the arrangement with us.

Mortgage overpayment questions asked by you

Will my overpayments affect the length of time I have left to pay the mortgage?

Making an overpayment won’t automatically cut down your mortgage term.

Overpayments will cut down your mortgage balance, which means we’ll charge you less interest. This means, at your annual mortgage review, we will lower the amount you have to pay per month in the coming years.

If you'd like to reduce your mortgage term length instead, get in touch:

0345 1 200 100*

9am - 5pm Mon-Fri 9am - 1pm Sat

My mortgage has more than one part. Which part will be paid off first?

When you make an overpayment on your mortgage, by default all parts are paid proportionally. So the same percentage of each part will be paid, whatever the size.

If you make your overpayment by direct debit (as an additional part of your regular monthly payment) you can tell us if you’d like to pay different amounts to different parts of your mortgage.

Things to be aware of

  • The amount you can overpay each year without receiving an Early Repayment Charge depends on the mortgage deal you have.
  • All of our mortgage deals allow you to overpay up to 10% of your mortgage balance each year. Some products allow more.
  • Once you have made an overpayment, you can’t take that money back from your mortgage like you could a savings account. Though it may be possible to take a payment holiday.

Please check your product factsheet and mortgage offer for full details of overpayment restrictions and Early Repayment Charges.

Having trouble paying your mortgage? Find out how we can help.

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